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By the end of the year the solar industry will get a another dimension when Solar3D, led by CEO Jim Nelson, introduces its “three-dimensional” crystalline silicon prototype. The design aims to increase efficiency by reducing the amount of energy lost when sunlight is reflected off the solar cell or absorbed into the material before reaching the contact wires.

Nelson says the prototype will collect 25 percent of the sunlight hitting the cell (about six to ten percent better than current technology) by trapping photons inside a bowl-like photovoltaic chamber until it they are absorbed.

Solar3D's new design is not the only thing making it unique within the solar industry. Unlike many other fledgling green energy companies, Nelson, who spent 20 years working in the private equity industry prior to joining the solar start-up, said he has no interest in government subsidies. “They support broken technology,” he said. “The solar industry doesn’t stand on its own economically. Where I think government has a role is encouraging innovation that would get us to grid parity.”

Recently, I caught up with Jim Nelson to further discuss what he thinks the role of government in the solar industry should be.

How dependent are solar companies on government subsidies/funding?

There are many companies that make a living off and are getting rich off the government subsidies. A great example of how inappropriate the subsidies are is that the government gave investment and loan guarantees of over a billion dollars to a project in California that would have happened without the subsidies.

What would be the effect if these subsidies disappeared today?

Some smaller companies will struggle without installation subsidies, but the purpose of government subsidies is to promote a strategic plan for green energy. If subsidies stopped for current technology installation, newer technology would be pushed forward to become more competitive with current substitutes.

When will the industry be able to succeed without the government’s help?

Government has an obligation to push its agenda for the nation which includes proliferation of clean energy. Help with innovation may never stop, and it is appropriate for government to participate in that. The industry will succeed with or without government subsidies as innovation take us closer to grid parity. I think that the industry will achieve that in this decade because of the great new technology coming on line.

Are these subsidies good for the industry, and the country?Innovation subsidies are good in the same way that the national labs are good--they are a national treasure that helps us get innovation to change the world and should continue. Operating subsidies, or installation subsidies, helps get clean energy sources installed but the problem is that current technology is not economically competitive. Everything we do needs to be done with a view toward global competitiveness. Unfortunately, because current technology is not economical relative to alternatives, it does not promote our competitiveness.

How is Solar3D creating a business model that works without government incentives to companies or consumers?

Solar3D is developing a product with a total focus on moving toward grid parity, which will make solar the power source of choice and change the way the world looks at electricity production. The entire industry is being energized by Stephen Chu's SunShot Initiative. His challenge is to get the industry to produce electricity for $1 per watt--which would get us to grid parity. We will be part of that process.”